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A leak inquiry will take place following reports that economic growth forecasts have been reduced by the government’s financial watchdog.
Bloomberg reported that the Office for Budget Responsibility (OBR) had reduced its growth forecasts in data sent to Chancellor Rachel Reeves last week.
Reduced growth could force the government to cut further spending or increase more taxes.
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The next forecast is set to be published in March – with the process supposed to remain confidential until that point.
The inquiry was confirmed by James Bowler, the most senior civil servant in the Treasury.
He told the House of Commons Treasury Committee: “We will undertake an inquiry, and I’m happy to communicate the outcome of that.”
The government’s attempts to grow the UK economy have proved difficult since the election last year, and businesses have complained about measures introduced in Ms Reeves’s first budget.
Part of Labour’s plan involves increasing house building and development, although these plans were not included in the forecasts for last October’s budget.
Mr Bowler sought to play down the fact that a leak inquiry was happening meant that what was reported by Bloomberg was true.
Asked by committee chair Meg Hillier about the inquiry, the civil servant appeared to indicate about 50 people in the Treasury would have been able to see the forecasts.
Will a leak inquiry find the leak?
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